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Growth and Equity for a Changing World
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Fund of the Week: 1863 Ventures Invests In New Majority Entrepreneurs Aiming For Scale

by Elaine Pofeldt and Elizabeth MacBride
June 23, 2020
in Finance
Reading Time: 2 mins read
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  • Melissa Bradley, 1863 Managing Partner

Fund: 1863 Ventures
Washington, D.C.
First close of $2.5 million, aiming to raise $10-$20 million

What it is: An impact-oriented venture capital fund investing in New Majority entrepreneurs. The fund is attached to a business development program committed to accelerating New Majority entrepreneurs from high potential to high growth. 1863 Ventures and its affiliated program have supported 559 founders; about 90% of them are Black. “Our goal is to create $100B of new wealth by and for New Majority entrepreneurs in 10 years.”

Invests in companies that demonstrate traction and market validation and are led by founders committed to scale their companies.

Minimum investment size: $500,000

Investment style: Last year, it invested $850,000 in a model portfolio of seven businesses in the form of non-dilutive grants. The companies went on to raise $2.95 million from other capital sources, according to 1863 Ventures, enabling the raise of a more traditional VC fund. Going forward, the fund will make revenue-based loans with rates around 7-10% for the life of the 3-5 year loan. Repayments are tied to cash flow. The fund hopes to deliver a 10-12% annual return to LPs.

Leadership: Founded by Melissa Bradley, an Obama and Clinton appointee, Georgetown University professor of practice, and founder of Sidecar Social Finance, an impact investing advisory practice 

Quote: She appreciates the good intention of VCs setting up new funds specifically for Black founders, but has some doubts. “If people really want to invest in us,” says Bradley, “they would have picked up the phone and invested in one of us. We don’t need another PR stunt.”

For more inspiring stories, insights and actionable funding opportunities, subscribe to Times of E’s weekly newsletter, www.timesofe.com/introduction.
Tags: 1863 Venturesearly stage investingMelissa BradleyNew Majority Entrepreneurs
Elaine Pofeldt and Elizabeth MacBride

Elaine Pofeldt and Elizabeth MacBride

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